India’s Ministry of Coal is gearing up to launch ‘Coal Reforms 3.0’, a transformative initiative aimed at reducing coal imports and boosting availability for industrial sectors. The upcoming reform is set to target non-power sectors, with a particular focus on the steel industry. The government’s ambitious goal includes achieving zero coal imports in the next two financial years. The strategy involves a new forward bidding auction process to unlock domestic production of coking coal. Two routes will be made available for auctioning, catering to steel units with washeries and those without. Participants opting to wash their own coal will have the opportunity to sell the byproducts as well, a move that aims to streamline the coal supply chain. In a significant move, end-use restrictions for auction participants will be eliminated, signaling a more flexible and open coal market. One of Coal India’s subsidiaries, Bharat Coking Coal Ltd (BCCL), will play a pivotal role in establishing washeries to support the initiative. BCCL, the largest coking coal miner in India, is poised to drive the domestic production of coking coal and bolster the self-reliance of the steel sector. With ‘Coal Reforms 3.0’, the Indian government is poised to revolutionize the coal industry and spur growth in non-power sectors, particularly in steel production.
